Agencies
New Delhi, May 19: Gold prices rallied Rs 580 to Rs 97,030 per 10 grams in the national capital on Monday amid strong trends in the international markets, according to the All India Sarafa Association.
On Friday, the precious metal of 99.9 per cent purity had closed at Rs 96,450 per 10 grams.
Gold of 99.5 per cent purity climbed Rs 580 to Rs 96,580 per 10 grams (inclusive of all taxes) on Monday. It had settled at Rs 96,000 per 10 grams in the previous market session.
“Gold prices edge higher, but remain under pressure, as softer US PPI and CPI data for April indicate disinflation. “At the same time, the US Treasury yield is approaching 4.5 per cent, extending Friday’s rebound after rating agency Moody’s downgraded the US credit rating from Aaa to Aa1,” Abans Financial Services Chief Executive Officer Chintan Mehta said.
This move has reignited interest in gold, as investors reduce exposure to US Treasury bills and seek a safe haven asset, Mehta added.
Additionally, silver appreciated by Rs 500 to Rs 98,500 per kg (inclusive of all taxes). The white metal had ended at Rs 98,000 per kg on Friday.
Meanwhile, the most traded contract for gold futures rallied Rs 1,182 or 1.28 per cent to trade at Rs 93,623 per 10 grams on the Multi Commodity Exchange (MCX).
Silver futures for July delivery increased Rs 662 to trade at Rs 95,980 per kg on the commodities bourse.
On the global front, spot gold went up by USD 39.05 or 1.22 per cent to USD 3,241.82 per ounce.
“Focus during the week will be on the US macroeconomic data such as manufacturing/ services PMI, and housing data,” Pranav Mer, Vice President, EBG – Commodity & Currency Research, JM Financial Services, said.
The data release will provide more impetus for the US Federal Reserve’s future monetary policy cycle. According to Goldman Sachs, gold will rise to USD 3,700 per ounce by the end of 2025, as central banks continue to buy tonnes of the precious metal every month.
The commodity is also likely to climb as ETF investors increase their holdings in anticipation of interest rate cuts by the US Federal Reserve and amid growing recession concerns. |
